Commenting on the proposals by the anti-tobacco group Action on Smoking and Health for future tobacco control measures Giles Roca, Director General of the Tobacco Manufacturers’ Association commented:

“This report shows just how draconian and self-serving ASH’s agenda has become. Measures such as a complete ban on smoking in cars or a levy on tobacco companies are clearly not evidence based but are simply a case of an anti-smoking professional lobby group trying to find new ways to attack smokers and a legitimate industry. These proposals would cost the Treasury billions over the next parliament and would simply provide government funding for this group to continue lobbying the government.

“All this comes on top of the tobacco display ban which has only recently been introduced in small shops, whilst the EU’s Tobacco Products Directive (which bans packs under 20 cigarettes or 30 grammes of tobacco, which bans menthol cigarettes and which increases health warnings to 65% of the pack) and plain packaging of tobacco have yet to be implemented, let alone evaluated.

“Aside from the unwarranted intrusion on individual freedoms, this continued drive to over-regulate the UK tobacco market will simply create greater opportunities for organised crime groups involved in smuggling on a massive scale. These proposals are an unprecedented, un-evidenced, dogmatic attack on a legal industry that would have hugely damaging consequences.”

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (www.imperial-tobacco.com)

2. The ASH report entitled Smoking Still Kills is due to be published on 9 June 2015

3. TMA commissioned Oxford Economics to undertake analysis of the sort of tobacco levy ASH proposes and it concluded that it would be a revenue negative measure, which would cost the Government money if implemented and not, as ASH claims, increase tax receipts. A copy of the Oxford Economics paper is available on request.

]]>0tma.adminhttp://www.the-tma.org.uk/?p=26812015-03-18T17:39:38Z2015-03-18T16:41:22ZTMA responds to the Chancellor’s Budget – 18 March 2015

“The decision to increase tobacco duties by 2% above inflation is simply a continuation of a failing tobacco tax policy, which according to the OBR is now expected to deliver around £6bn less in revenue over the course of the next Parliament. At the same time the illegal market is clearly growing as price conscious consumers seek cheaper products elsewhere. The illegal market cost HM Treasury £2.1bn in 2013/14 and whilst we recognise the Government’s commitment to a renewed Anti-Illicit Tobacco strategy, further tax rises will simply undermine these efforts.”

“The announcement of further tax rises is compounded by the Government’s decision to push ahead with plain packaging of tobacco products. The regulations make no allowance for the continued use of an on-pack security and authentication tool which has been voluntarily developed and implemented by industry and is now being used by HM Revenue & Customs. We said all along that plain packaging will be a gift to the criminal gangs who wish to flood the UK market with cheap, counterfeit tobacco and the Government is helping to make this a reality.”

According to HMRC’s Measuring Tax Gaps Report , in 2013/14 the illicit tobacco market cost the Government £2.1bn in lost taxes, an increase of £500m on 2011/12 figures.

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (www.imperial-tobacco.com)

2. The Tackling Tobacco Smuggling strategy was unveiled in March 2000, with further revisions taking place in March 2006, November 2008 and April 2011. The Government is expected to announce a revised strategy in 2014

3. Further information can be found on the TMA’s website – www.the-tma.org.uk

]]>0tma.adminhttp://www.the-tma.org.uk/?p=26782015-03-14T05:56:51Z2015-03-14T05:56:51ZResponding to the report, Giles Roca, Director General of the Tobacco Manufacturers’ Association (TMA) said:

“We are pleased that the Committee has recognised the work that the tobacco industry does in the UK to address the issue of smoking related litter and also that councils are free to work with the industry to deliver such change.

“80% of the cost of tobacco is tax, or some £12 billion a year, and it is a matter for the Treasury how it allocates such funds. However, simply using such resources to plug funding shortfalls in local government budgets will not address the root cause of the litter problem. This has to be about long-term behaviour change and personal responsibility. That’s why the industry has supported such measures over the years, including the distribution of free portable ashtrays to smokers.”

]]>0tma.adminhttp://www.the-tma.org.uk/?p=26752015-03-11T17:17:40Z2015-03-11T16:20:37Z11 March 2015

Today the House of Commons voted in favour of introducing plain packaging of tobacco products.

Giles Roca, Director General of the Tobacco Manufacturers’ Association said:

“Plain packaging is unnecessary, unjustified and unwanted by the majority who responded to the public consultations as well as those in law enforcement and the business community, including the CBI . There are over 50,000 people employed by packaging companies, design agencies and retailers whose businesses will be adversely affected to no purpose. The evidence emerging from Australia is clear, plain packaging is failing – youth smoking rates have increased alongside a rising illegal market.

“We are extremely disappointed that the Government has not taken into account the impact that this measure will have on jobs and the illegal market. The impact on the illegal market is compounded by the fact that the regulations make no allowance for the continued use of an on-pack security and authentication tool which has been voluntarily developed and implemented by industry and is now being used by HM Revenue & Customs. We said all along that plain packaging will be a gift to the criminal gangs who wish to flood the UK market with cheap, counterfeit tobacco and the Government is helping to make this a reality.”

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (www.imperial-tobacco.com)

2. The 2012 UK-wide consultation into standardised packaging revealed that 64% of the 600,000+ responses were opposed to it. This unprecedented response represented views from thousands of members of the public as well as retailers, packaging companies, marketing and design firms, manufacturers, wholesalers, politicians, employers, employees, business groups, trade unions, the Intellectual Property community, international business, trade associations and the law enforcement community.

3. The only market to have introduced plain packaging thus far, Australia, has seen illegal tobacco consumption grow to its highest level in 7 years. By mid-2014, illicit tobacco consumption stood at an unprecedented 14.7% of the market as a whole – 25% higher than it had been in 2012 (11.8%). Over the same period, there has been no decline in youth smoking rates and plain packaging has not led to an accelerated decline in tobacco sales.

5. Further information can be found on the TMA’s website – www.the-tma.org.uk

]]>0tma.adminhttp://www.the-tma.org.uk/?p=26712015-01-22T08:10:25Z2015-01-22T08:10:25ZGiles Roca, Director General of the Tobacco Manufacturers’ Association, said:

“We are very disappointed with the government’s decision. The evidence from Australia clearly shows that plain packaging doesn’t work, so why are they looking to move ahead with it? We hope that when it comes to the vote, MPs will realise that this is simply a flawed policy and vote no to plain packaging. Dogma has got in the way of sensible, evidence-based policy making.”

“This anti-business idea is illogical and ignores a major cause of lost tobacco tax, the illegal market. Rather than coming up with ways to attack a legitimate UK business sector, selling a legal product which already contributes £12.3bn per year in tax, the Labour party should be thinking of how to claw back the billions in revenue the government loses through sales of illegal tobacco in the UK. The latest HM Revenue & Customs data shows that the illegal market cost up to £2.9bn in 2012/13, a rise of £500m on the previous year.”
]]>0tma.adminhttp://www.the-tma.org.uk/?p=25392014-06-26T13:00:27Z2014-06-26T12:28:55ZGiles Roca, Director General of the Tobacco Manufacturers’ Association (TMA), commented:

“The tobacco industry supports proportionate legislation and works hard to stop under-age sales. Indeed, the industry stands ready to work with Government and health profession on measures to reduce children’s access to tobacco. However, introducing ineffective tools such as plain packaging is not the answer. We now know that plain packaging has proven not to work, with evidence from Australia showing it has resulted in an increase in illicit trade. There is also clear evidence that organised criminality would seek to take advantage of plain packaging by making it easier to bring illicit tobacco into the UK which is likely to result in more not less instances of under-age smoking.

“We therefore welcome this consultation as a further opportunity to set out the true facts and evidence around the weaknesses of plain packaging. Given the Government’s commitment to evidence-based policy making, we would urge it to consider all the facts in their entirety, before moving forward on such a decision.”

“We are extremely disappointed with the review’s recommendation, because there is no credible evidence that plain packaging will deliver its intended outcomes.

“Plain packaging will simply lower the barriers to entry for criminals, as tobacco products would become far easier and cheaper to copy, adding to the £7.9m* per day in tax revenue that is currently lost to the illegal tobacco market. Australia is the only country to have introduced plain packaging and the illegal tobacco market has increased markedly, whilst smoking rates have remained the same.

“The UK Government has clearly stated that it will consider issues outside of the scope of the Chantler review before making a decision, therefore, we urge the Government to do so.”

“Today’s announcement to increase tobacco duties by 2% above inflation and continue this duty escalator policy through the next parliament will do nothing to arrest the increase in illegal tobacco that is currently costing the UK Government up to £7.9m per day in lost tax revenues. This loss in revenue is further compounded by the Office for Budget Responsibility’s repeated downgrading of legitimate tobacco receipts, which has seen projected revenues for 2013/14 fall by up to £200mn, as consumers faced with higher tax led prices and weak disposable income increasingly switch to the illegal market. The Government has missed an important opportunity to address this counterproductive tax policy.”

According to HMRC’s Measuring Tax Gaps Report , in 2012/13 the illicit tobacco market cost the Government up to £2.9bn in lost taxes, an increase of £500m on 2011/12 figures.

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (www.imperial-tobacco.com)

2. The Tackling Tobacco Smuggling strategy was unveiled in March 2000, with further revisions taking place in March 2006, November 2008 and April 2011. The Government is expected to announce a revised strategy in 2014

5. Further information can be found on the TMA’s website – www.the-tma.org.uk

]]>0tma.adminhttp://www.the-tma.org.uk/?p=24542014-02-04T09:34:52Z2014-02-04T09:34:52ZThe TMA has long campaigned for it to be made illegal to buy tobacco for a person under the age of 18 (proxy purchasing). Therefore, it is welcome news, that the Government has announced plans to introduce a ban on proxy purchasing.

“We support the government’s proposal to introduce a ban on the proxy purchasing of tobacco products especially as in 2011 a review by the Institute of Education into young people’s access to tobacco cited proxy purchasing as one of the main sources. The introduction of this law will only be effective if supported by the resources required to enforce it. We look forward to seeing the steps the Government will take to implement and apply the law.

“However, we remain concerned that at the same time the Government is considering the introduction of standardised tobacco packaging based on no reliable evidence at all.”

The UK Government has commissioned a review[1] into the public health evidence around the plain packaging of tobacco products, following a UK-wide consultation into standardised packaging in 2012 which revealed that 64% of the 600,000+ responses were opposed to it.

Jaine Chisholm Caunt added:

“Why would the UK government pursue a counterproductive policy like standardising cigarette packs when other measures such as the recent ban on displaying packs in shops has not been given time to be implemented, let alone evaluated? We hope that any review will be open-minded, and take into account the views and concerns of the TMA and the thousands of businesses, large and small, who don’t see ‘plain packaging’ as a workable solution or an effective tobacco control measure.”

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (www.imperial-tobacco.com)

2. UK tax (excise + VAT) revenues from cigarettes and hand rolling tobacco were an estimated £12.3 billion in 2012/13. According to HM Revenue & Customs’ Measuring Tax Gaps Report, up to £2.9bn in revenue was lost to the illicit tobacco market in 2012/13.

3. A 2011 review by the Institute of Education into young people’s access to tobacco cited proxy purchasing as one of the main sources.

4. In 2010, the Scottish Government passed legislation that made it an offence for adults to buy tobacco for under 18s (proxy purchase).

5. The TMA’s Transparency Statement, which sets out the TMA’s core principles and campaign issues (including proxy purchasing) is available via the TMA website

6. Further information can be found on the TMA’s website – www.the-tma.org.uk